Short-term mismatch in supply and demand difficult to change, it will take some time for the lithium industry to recover.

Looking back at the lithium price trend in the first half of 2025, factors such as oversupply and slowing downstream demand have led to "continuing price exploration" becoming the key word for the development of the lithium carbonate industry. "It seems like lithium prices have hit bottom, but the fundamental imbalance between supply and demand has not fundamentally changed, making price rebound not so easy." As for whether the lithium carbonate industry can reverse in the second half of the year, a senior executive of a A-share lithium mining company bluntly said that the current focus of the company has shifted to cost reduction, rather than predicting a price turning point. Indeed, although there are signs of a halt in the recent decline in lithium prices, the market price of battery-grade lithium carbonate at 63,000 to 64,000 yuan per ton is still below the "break-even point" for most manufacturers. The reality of expanding production projects being met with slowing demand has led the lithium carbonate industry to undergo a deep adjustment and reshuffle. Some industry insiders familiar with the lithium salt industry believe that based on supply and demand relationships and production and sales data, although lithium prices have reached the industry's perceived bottom, there is still insufficient momentum for an increase in the second half of the year, and recovery will take time.